Lodgers and dodgers

Mischa van Duuren, a 19-year-old student at Brunel University, spent his first year paying £72 a week rent to live in halls of residence. But when he returns in September, he will move into a £220,000 three-bedroom house bought by his parents. The idea is he will live in it and rent out rooms to friends.

"Rents are so high, on campus and in the surrounding area, that you can easily spend up to £9,000 or more throughout the three years of your course," he says. "My parents saw it as financially viable, and it will make a profit while helping me at the same time. They plan to sell in two years when I graduate and buy another property for my younger brother when he starts university."

But how does Mischa feel about being a landlord to his mates? "It will be strange, and there will be more responsibility for me. But they're good, trustworthy friends. There shouldn't be any disputes. We discussed rules and regulations with my parents in an informal meeting, so I don't think anyone is expecting 'mates' rates'."

Friends who are also your tenants can prove troublesome, as one student discovered. Stephanie Otis, a 20-year-old from London, spent her second year living with friends in a seven-bedroom house in Uxbridge, which her parents bought last September for £274,000.

She complained that friendships soured. "They didn't take rules seriously and were late with rent. It was stressful at the start, as both me and my friends had to adjust and get used to the idea that I was both landlord and friend," Stephanie said.

"It was difficult implementing rules but I learned that it literally didn't pay to be nice, so I had to draw the line between business and friendship.

"Despite the teething problems, overall it has been a good experience. I've learnt about the property market, money management and people."